If an insured reports a loss to their agent within 12 days, but the agent notifies the insurer after 60 days, how is the claim processed?

When an insured reports a loss to their agent, the insurance claim process is considered initiated. In this scenario, the important factor is that the insured has met their obligation to report the loss in a timely manner within 12 days. The agent serves as a representative for the insurer, and their notification is considered as if the insurer has been informed, even if it occurs later.

The principle that applies here is known as the "Agency Relationship". In insurance, once the agent receives information about the loss from the insured, they are responsible for communicating that information to the insurer. Therefore, the insurer is deemed to be notified as long as the insurer's agent receives the claim report, regardless of the time taken by the agent to formally communicate it to the insurer.

The outcome is that the claim should still be processed despite the delay in notification from the agent to the insurer because the initial reporting obligation by the insured was fulfilled properly within the stipulated timeframe. This underscores the significance of the reporting duties of agents in the insurance claim process, ensuring that insured parties are not penalized for delays caused by their agents.